Organization goals – why is it important to set them?

Find out the value of organization goals. Learn about the principles of goal setting and other aspects to keep in mind!

Value of the organization’s goals

Formulating goals for an organization is essential for its effective functioning. Objectives in an organization are a valuable source of information. With the help of specific goals, we learn whether the activities undertaken in the organization are heading in the right direction. Objectives in an organization are also the basis for controlling and evaluating the activities of employees. Goals also play a motivational role.

Among the most important reasons why every company should have specific goals, we can mention:

• Giving a deeper meaning to every activity undertaken in the organization.
• Motivating all employees to work more effectively.
• Having a measurable form of evaluation of the efforts undertaken by employees.
• The ability of the organization to take coordinated, harmonized action.
• Improving the quality of services and products offered.

It is also worth noting that setting goals in an organization is one of the basic recommendations in ISO 9001, which is the basis for creating an effective quality management system.

What is worth remembering when setting goals?

An organization’s goals should always be in line with its policies, correspond to its activities, established strategy and capabilities. In addition, experts recommend setting goals according to the SMART principle. The SMART principle talks about how to set effective goals well – ones that will really bring better quality to our organization.

The principle of SMART goal setting

What does SMART mean? SMART – takes its name from the first letters of English words that define the qualities that each goal should have.

S – specific
The goal should be clearly, precisely defined, so that each employee is aware of what, how and when he or she is supposed to do in order for the goal to be achieved.

M – measurable
The goal should be formulated in such a way that it is easy to determine the extent to which it has been achieved. It is necessary to have indicators that will make it possible to determine whether the actions taken have had an effect – that is, whether the set goal has been achieved.

A – achievable
A well-formulated goal should be demanding enough that pursuing and achieving it will bring satisfaction to employees. The goal must not be too simple or too demanding.

R – relevant
The goal should be achievable, but at the same time it should be meaningful to us. Its achievement should give a sense of fulfillment.

T – timed
The goal must have a strict deadline. Placing the goal in time is another motivational factor.

Other aspects of goal setting in the organization

To have order in the organization, it is worthwhile to carefully define the way to achieve these goals. It is then necessary to think about aspects such as methods of achieving the goals, financial, human and infrastructure resources, the criterion for evaluating the degree of achievement of the goals, and the system for communicating the goals. The degree of achievement of each of the set goals must be monitored on an ongoing basis, and analyzed at turning points. The lessons learned, in turn, should provide valuable guidance for setting further goals in the future.

Autonomization of goals

The phenomenon of goal autonomization is a process we face when an organization “breaks away” from its core function. What does this mean? It means that the organization changes its primary objective to another – informal. We also deal with such a phenomenon when the previous intermediate goal is swapped and becomes the final goal of the organization.

The concept of goal autonomization is usually considered negative and harmful to organizations. However, it is important to note the positive aspects of this phenomenon. Autonomization of objectives allows the organization to adapt to the external environment in cases of extreme threats to its existence, increases the flexibility of the organization’s adaptation to the environment, which is beneficial from the social point of view.

In summary, only such an organization that knows how to discover, correctly define and realize its own goals will perform well – from an economic as well as a social point of view.